In rural Missouri, community banks and credit unions help to drive economic development by lending money to families, to businesses, and to farmers. These resources allow families to pay for home improvements and allow businesses and farmers to expand their operations or pay for needed supplies. Lending institutions help to create jobs and sustain economic growth, which is especially critical as the United States works its way out of a severe economic recession.

Over the past year, I have talked extensively about the economy with community bankers, credit union officials, Realtors, developers, and farmers. In nearly each of these meetings, I have heard a common theme — small town lending institutions did not take part in creating the economic crisis but they are feeling increased pressure to restrict lending by financial regulators in the field. This worries me a great deal.

I realize that breakdowns in financial regulation contributed to the economic crisis and that bank regulators must sustain core safety and soundness principles of bank regulation. But, the malfeasance that ignited the financial crisis generally occurred within large Wall Street banks and within non-bank lending markets. By and large, small town lending institutions did not contribute to the economic mess created by Wall Street’s greed.

In my view, bank regulators in the field ought to be more thoughtful and measured when reviewing the books at community banks and credit unions. It does not serve the American people well to constrict lending opportunities at healthy banks and credit unions at the very time when our nation needs these lending institutions to lend money to families, businesses, and farmers.

I hope that you will each carefully review this situation and speak to your field regulators about the concerns of my community banks and credit unions. Please get back to me at your earliest convenience.

Very truly yours,Ike SkeltonMember of Congress

Congressman Ike Skelton (D-Mo.) serves as chairman of the House Armed Services Committee. Congressman Skelton’s website is at www.house.gov/skelton.